Report: Petraeus knew early Benghazi attack was work of terrorists - Fiscal cliff negotiations to begin at the White House - Dunford out of the loop on Afghanistan

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PRO SCOOP: NORTHROP GRUMMAN CEO NAMED CHAIRMAN OF AIA — Northrop’s Wes Bush has been approved as chairman of the Aerospace Industries Association, effective in January, two industry sources tell Morning D. Bush, who currently serves as AIA’s vice chairman, will succeed Pratt & Whitney President David Hess, whose term expires at the end of the year. The decision was made yesterday at AIA’s board meeting in San Diego.

DRIVING THE EARLY MORNING: PETRAEUS TO THE HILL — The retired general is set to meet with the House Intelligence Committee at 7:30 a.m. and the Senate Intelligence Committee at 9 a.m., with both discussions taking place behind the closed doors of secure briefing rooms. And Petraeus is likely to drop a bombshell, one sure to add fuel to the GOP firestorm over Benghazi. According to CNN’s Barbara Starr, the former CIA director knew “almost immediately” the September attacks on U.S. diplomatic facilities in Libya were the work of “Ansar Al-Sharia, a loosely-formed group that has some members sympathetic to Al Qaeda.”

But, a source familiar with the situation tells Starr, there were separate intelligence feeds indicating the attacks might have been caused by an anti-Islam video — a theory that has since been debunked. More here: http://bit.ly/RXUsD9

DRIVING THE MID-MORNING: FISCAL CLIFF TALKS — President Barack Obama is sitting down with congressional leaders in the Roosevelt Room at 10:15 a.m. in the opening gambit of negotiations to avert sequestration and prevent at least some of the tax hikes scheduled for year’s end. “He will be make clear that he is willing to compromise and do tough things to get this done,” a White House official said in a statement, “but only in the context of a balanced approach that also asks more in revenues from the wealthiest Americans.”

POLITICO’s Carrie Budoff Brown and Jake Sherman have a guide to the positions and strategies of the key players: http://politi.co/UJUHz3

WHAT FISCAL CLIFF? SENATE CLOSES SHOP. The Senate is leaving town until after Thanksgiving, following a back-and-forth between Democrats and Republicans over the NDAA and other bills on the to-do list. Senate Majority Leader Harry Reid asked Republicans for a list of NDAA amendments, and they didn’t have one ready — so he accused them of holding up work on the bill. “My friends can’t take yes for an answer,” Reid said on the Senate floor. “We’ll come back after the recess for Thanksgiving, and we’ll look at it again.” POLITICO’s Manu Raju explains the gridlock: http://politi.co/WaQaXd

WHAT PROS ARE READING:

-- PANETTA ORDERS ETHICS REVIEW — The Pentagon is seeking ways to better “foster a culture of stewardship,” following a series of high-profile incidents of wrongdoing that has caused many to question what might be wrong at the very highest ranks of the military. Kate has the story: http://politico.pro/S1Q18P

-- DUNFORD OUT OF THE LOOP ON AFGHANISTAN — Marine Gen. Joe Dunford, tapped as the new top U.S. commander in Afghanistan, acknowledged yesterday he’s not familiar with the game plan of the outgoing commander, Marine Gen. John Allen. Stephanie breaks down Dunford’s heated exchange with Sen. John McCain: http://politico.pro/RGFOie

-- McCONNELL: HOPE IS TO CONTINUE CYBER — Senate Republican Leader Mitch McConnell expressed hope yesterday the chamber could still return to cybersecurity reform, even after lawmakers voted down a comprehensive reform bill largely on party lines just a day earlier. Tony has the details: http://politico.pro/U3fReP

-- COBURN: DoD SHOULD FOCUS ON DEFENSE — The Defense Department runs microbreweries, produces grilling shows, operates grocery stores, studies “the use of slang” on Twitter and is trying to improve the taste of beef jerky snacks. Does this all amount to a severe case of “mission creep”? Sen. Tom Coburn thinks so. In a new report, he has renamed it “The Department of Everything.” Kate has the story: http://politico.pro/ZVLgBp

-- PLUS: The VA and Labor Department are teaming up to help veterans find jobs, Rep. Barney Frank says sequestration is a more pressing concern than taxes and McCain says the United States should halt its drawdown in Afghanistan.

TRIVIA TIME — On this day in 1776, Fort Washington on Manhattan was captured by Hessian Lieutenant General Wilhelm von Knyphausen. Among the American patriots wounded was Margaret Corbin, who holds what major Continental Army distinction? For the answer, read on.

SANDERS TO PICK UP SENATE VA GAVEL — With Sen. Patty Murray stepping down as chairwoman of the Senate Veterans’ Affairs Committee, Sen. Bernie Sanders is expected to take the helm. “Bernie is a strong defender of veterans’ rights and proud of accomplishments for veterans in Vermont and America,” said his spokesman, Jeff Frank. “He has enormous respect for Sen. Murray and for all of her work on behalf of veterans.” Murray is taking the helm of the Senate Budget Committee but will remain a member of the VA panel.

WHOOPS: McCAIN ABSENT FROM LIBYA HEARING — SASC’s top Republican skipped a classified briefing on Benghazi yesterday hosted by the Senate Homeland Security and Governmental Affairs Committee. McCain, of course, had time on Wednesday to hold a press conference where he blasted the White House over its explanation of the attacks. McCain spokesman Brian Rogers said the senator’s absence was due to a “scheduling error.” POLITICO’s Scott Wong and Kate Nocera have the story: http://politi.co/TPsRTh

INDUSTRY RAMPS UP CAMPAIGN CONTRIBUTIONS -- Defense PACs are on pace to set a new record this election cycle for the amount of political cash given by Pentagon contractors to federal candidates, according to a new report by Virginia-based political intelligence firm PowerBase Associates. During the not-yet-completed 2012 election cycle, the defense industry skewed red, with nearly 60 percent of its $29 million in contributions going to Republicans. Read the report here: http://bit.ly/W9yDyR (salute: POLITICO’s Dave Levinthal)

BAE TO ACQUIRE SHIP-REPAIR FIRM — BAE Systems has entered into an agreement with American Maritime Holdings to acquire Marine Hydraulics International, which operates shipyards in Norfolk and has about 400 employees. The company would be rolled into BAE’s ship repair unit.

AIR FORCE F-22 CRASHES ON FLORIDA BASE — An F-22 Raptor fighter jet crashed yesterday afternoon on Tyndall Air Force Base, Fla., the Air Force announced. The pilot ejected safely. His exact condition was unclear, but the Air Force said “he is currently under supervision of the 325th Medical Group.” Part of a local highway was closed “as a safety precaution,” the Air Force said.

HORROR: TRAIN CRASHES INTO VETERANS DAY PARADE — Via the AP: “A freight train slammed into a parade float carrying wounded veterans on Thursday, killing four people and injuring 17 others as the float crossed a West Texas railroad crossing on its way to an honorary banquet, authorities said. The eastbound train was sounding its horn before it hit the float around 4:40 p.m. in Midland, Union Pacific spokesman Tom Lange said. A preliminary investigation indicates the crossing gate and lights were working at the time, Lange said, though he didn’t know if the train crew saw the float approaching.” http://politi.co/RXZGPa

MAKING MOVES: CAMPBELL NOMINATED TO FT. BRAGG POST — Army Lt. Gen. John Campbell has been nominated for a fourth star and to be commanding general of U.S. Army Forces Command at Fort Bragg, N.C. Campbell is currently serving as the Army’s deputy chief of staff, G-3/5/7, in Washington.

TOP DOCS —

-- CRS has a new report on proposals to replace sequestration. The first of four proposals put forward is from the president, who would stave off the automatic spending cuts by raising taxes on wealthier Americans, generating savings from changes to Medicare and capping spending on overseas contingency operations. http://bit.ly/RYlvA5

-- CRS is also out with a backgrounder on federal cybersecurity laws: http://bit.ly/QgWgsr (salute: Federation of American Scientists)

WHO’S WHERE WHEN —

12:30 p.m.: Chief of Naval Operations Adm. Jonathan Greenert speaks at the National Press Club Speakers Luncheon on the state of the Navy and the pivot to the Pacific.

3:30 p.m.: Secretary of the Air Force Michael Donley speaks at the Air Force Association’s Global Warfare symposium in Los Angeles.

TRIVIA ANSWER — Margaret Corbin was the first woman known to have fought for the Continental Army. From the History Channel: “When [her husband] John died in action, his wife Margaret took over his cannon, cleaning, loading and firing the gun until she too was severely wounded.” http://bit.ly/9b9zos